Is an energy bill hike about to hit?

Britain's second largest energy supplier, Scottish and Southern Energy (SSE), has announced that it is putting its gas prices up by 9.4% from the 1 December.

Price hike: Will other suppliers follow SSE?

SSE are the first of the big six suppliers to announce a general price increase since 2008.

The changes, which will take affect just three weeks before Christmas, are sending out a warning that household energy bills are on the rise again.

The increase will hit its standard tariffs, affecting 3.6m customers. This will add an extra £67 on to the average annual SSE standard dual fuel bill, which will increase from £1,159 to £1,226 as a result.

In 2008, household energy prices rocketed by an eye watering 42% or £381. Price cuts in 2009 and in 2010 averaged out at 8% or £99 in total, leaving the average household energy bill £283 or 31% higher than in January 2008.

The move comes less than a month after EDF Energy increased electricity prices for 1.2m customers blaming distribution costs and realignment to Ofgem's cost reflectivity rules.

Unfortunately, SSE's move today could be followed by other suppliers, resulting in households seeing price hikes far sooner than expected and feeling the pain of the increases during the winter when energy consumption is at its peak.

Ann Robinson, director of consumer policy at uSwitch.com, said: 'With winter about to kick-in this is a body blow for consumers. What nobody wants to see is a repeat of 2008 when suppliers last put prices up and bills rocketed by £381 or 42% as a result.'

'From the 1st December, the average household energy bill will be over £1,200. For many, bills are already in the realms of the unaffordable - any increases will simply see more people forced to think long and hard about whether to heat their home or cook a meal – this is unacceptable.'

'Ofgem's recent report into wholesale prices suggested that a price hike could be imminent in spring. This would at least have bought households some time and would have seen any increases hitting bills after the winter. Now, if other suppliers follow SSE's lead, consumers will see these increases on their heavy winter bills making it a real double whammy.'

Mark Todd, director of energyhelpline.com, said: 'This announcement is a grim Christmas present for millions of people especially as it will take effect during what is predicted to be an extremely harsh winter.'

'This decision is clear evidence that UK households are in the last-chance saloon with cheap deals and they must act now if they want to keep their costs down. I can't see the best two current offers from EDF and First Utility being around for much longer.'

''There won't be many parts of the UK which won't be affected by this swingeing price rise and unfortunately we believe this is the shape of things to come.'

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